FX.co ★ Technical analysis of USDX for November 8, 2016

The Dollar index bounced towards the 38% Fibonacci retracement of the latest decline and shows signs of rejection. I could expect some more Dollar strength today or even tomorrow that would eventually bring the index towards 98.20.

Is the entire bounce over or should we see some more upside towards the Kumo (cloud)? The Dollar index has hit the first important short-term resistance and got rejected. Support is at 97.35. Resistance is at 98.25. In the medium-term I was expecting a pullback towards 96.50 the breakout area and I continue to believe that we will see these levels.

In the daily chart price is trapped between the kijun- and tenkan-sen indicators. I remain longer-term bearish as I believe an important high was made last week and we should first move towards the 96.50 level. I also give many chances of breaking below the Daily cloud support and eventually pushing below 92 over the coming months.